Hyperliquid Launches Native Staking Amidst HYPE’s Price Surge

Layer-1 blockchain Hyperliquid has introduced native staking for holders of its HYPE token. The development comes one month after the HYPE token’s debut at $3.57, with its price now rising to $27.89, according to on-chain data.

The latest development comes amid a surge in the platform’s native token, HYPE. The crypto asset is currently exchanging hands at $27.08, representing more than 5% over the past week.

HYPE Holders Now Able to Stake

In an X post, the Hyper Foundation, which supports the development of the blockchain and its ecosystem, described staking as a crucial step for the network. By staking HYPE tokens, the community can collectively secure the blockchain.

Staking is now live on mainnet.

Staking is an important milestone for Hyperliquid because it allows the diverse community of HYPE stakers to collectively secure the network. Like other proof of stake networks, new blocks on Hyperliquid are proposed by validators in proportion to… pic.twitter.com/J8uECmHGwK

— Hyper Foundation (@HyperFND) December 30, 2024

Similar to other proof-of-stake networks, Hyperliquid relies on validators to propose new blocks based on the amount of HYPE staked to them.

Token holders can choose validators to delegate their tokens to and earn rewards in return for contributing to the network’s security. However, users are advised to delegate tokens only to trustworthy and reliable validators. Notably, locked tokens are also eligible for staking, although rewards generated from these tokens remain inaccessible for now.

The Hyper Foundation further encouraged users to evaluate validators based on factors such as uptime, commission rates, reputation, and contributions to the community. The approach enhances network security and decentralization while incentivizing active participation.

Revenue Surge

Hyperliquid has become the fifth-largest decentralized derivatives exchange by total value locked (TVL), trailing behind platforms like Jupiter Perpetual Exchange, Drift Trade, GMX, and dYdX. HYPE now boasts a market capitalization of $9.2 billion, placing it among the top 20 largest tokens. It recently surpassed popular tokens like Bitcoin Cash (BCH), Pepe (PEPE), and Litecoin (LTC) in market cap rankings.

The exchange has achieved $2.64 billion in trading volume over the past 24 hours. Data from DefiLlama reveals that Hyperliquid generates over $1 million in daily revenue. For instance, on December 26, the platform earned $1.27 million in revenue, surpassing Solana’s $1.24 million for the day. The milestone highlights Hyperliquid’s growing prominence, outperforming established blockchain platforms in daily earnings.